Expectations for January PVC pricing voiced in Asia
Some players anticipate a stable to slightly firmer pricing, citing that prices have already posted notable decreases within the last two months and the market already hit the bottom in November. Modest increases seen in the Indian market over the past week in the midst of slightly improved demand is the main justification of these firming expectations. Plus, ethylene prices in Asia are currently standing at their highest levels since late September, according to weekly average prices on ChemOrbis Price Wizard. This may also support the major’s decision along with the recent recovery in China’s local PVC market.
An agent of the Taiwanese major opined, “China’s local PVC market displayed a rebound this week and we hope this improvement will continue in the days ahead in order to support our supplier’s decision. The new pricing may be stable to slightly higher as we think there is no room for further decreases in the major’s offers.”
A source from a Southeast Asian producer also expressed firming expectations. “We think the major’s December offers already bottomed out. We expect to see modest increases of around $10-20/ton as producers are testing the Indian market.”
A source from another Taiwanese producer commented, “Market activities are slow across Asian markets, except for India, where most of the volume is forwarded. The major producer will reveal its January prices next week and we think it will be stable to $10-20/ton higher from December.”
On the other hand, some players prefer to be cautious regarding the expected announcement considering long supplies, particularly in India. They also think that demand needs to strengthen further for a shift in the sentiment.
An Indian trader noted, “We don’t think the major will have a chance to raise its January offers as they already had difficulties in selling around $850-860/ton CIF. We expect to see lower prices mainly due to oversupply issues nowadays while demand will perform better by next month. ”
Another Indian trader commented, “Demand is expected to reach the peak in February while local sellers are offering attractive levels. Therefore, we think their January pricing may emerge with further decreases of around $20/ton.”
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